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USAA was founded in 1922 by 25 army officers who couldn’t find a company that would ensure their vehicles. So they agreed to insure each other. The small business they started has now grown into an institution with millions of customers that offers a broad range of financial products to members of the military and their families. Auto loans are one of many products USAA offers to its members.

USAA offers auto loans with rates as low as 0.99% (with automatic payments). There are no application fees, prepayment penalties or hidden costs, and borrowers can get a decision is as little as 5 minutes. USAA consistently receives the highest customer service ratings. However, it is only available to people who are members of the armed forces or their families.

How Does USAA Auto Loans Work?

USAA offers three types of auto loans: new car loans, used car loans, and refinance loans.

Borrowers can apply online or by calling a USAA representative. USAA considers applicants with all types of credit, although only the lowest rates are only available to applicants with excellent credit (740+).

Applying online only takes 5 minutes, and most borrowers get an instant loan decision. Borrowers can sign their documents online and print their loan check instantly. Another option is to send the car dealer the check using USAA’s smartphone app.

- USAA offers lower rates for loans on new cars (brand new to 2-year old vehicles) and vehicles bought using USAA’s car buying service.

- There are no origination fees, prepayment penalties or other hidden fees.

- Loan terms range from 12 to 84 months. Available loan amounts are dependent on the value of the vehicle.

What Are USAA Auto Loans' Interest Rates?

Interest rates vary depending on a borrower’s credit profile, loan amount, loan term, and type of car. Rates can change at any moment, but as of March 2016, USAA has rates:

- As low as 0.99% APR for loans on new vehicles with USAA’s Car Buying Service Discount. The lowest rate without USAA’s Car Buying Discount is 1.49% APR.

- As low as 2.75% APR (2.25% APR with the USAA Car Buying Service Discount) for used cars.

- As low as 1.49% APR (2015 to 2017 cars) for refinances (2.75% APR for 2014 or older cars).

These rates are only available to borrowers with excellent credit.

Borrowers with poor credit (lower than 640) can qualify for interest rates as low as 6.99% to 7.49% APR depending on the length of the loan term.

Borrowers with fair credit (640 to 700) can qualify for interest rates as low 4.59% to 5.99% APR.

Borrowers with good credit (700 to 740) can qualify for interest rates as low as 3.35% to 4.99% APR.

How Much Money Can I Borrow from USAA Auto Loans?

USAA doesn’t set a maximum auto loan amount. Available loan amounts vary depending on the value of the vehicle you want to buy and your credit. However, only loan amounts for $25,000 or more qualify for the longest term of 84 months.

Which States Does USAA Auto Loans Operate In?

USAA operates in all states but only accepts people (and their families) who are in the armed forces.

What Is USAA Auto Loans' Application Process Like?

The application process is simple. It takes only five minutes to complete the form, and most borrowers get an immediate decision. If you are approved, you can e-sign the loan agreement and print your check instantly.

How Is USAA Better Than Other Lenders?

- The USAA has an A+ rating with the BBB and an A++ (Superior) rating with A.M. Best.

- It has some of the lowest rates available with any lender.

- It considers borrowers with all credit types: from poor to excellent.

- No origination fees, prepayment penalties or hidden fees.

- The only catch is USAA is only available to members of the armed forces and their families, so most people cannot benefit from its excellent rates and terms.

Loan Amount

$15000 - $25000

Min APR

0.99%

Max Loan Term (Months)

72

Lease Purchase

✘

New Loan

✔

Refinance

✔

Institution Type

Direct Lender

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Reviews

They approve you quick then make you wait a few days for money, just use financing that is less annoying.

80

2015-06-30T00:00:00+00:00 June 30, 2015

By
Anonymous

0 votes

0useful

This could be because I am a veteran, but I really feel like USAA takes care of me and my family. I have gotten car loans through them for around six years now, and have no plans to switch companies. I am always treated with respect and have even passed on the USAA torch to my kids for their auto loan needs.

100

2015-06-18T00:00:00+00:00 June 18, 2015

By
Anonymous

0 votes

0useful

I got such an amazing rate with USAA! I really wasn't expecting the low APR, but hey, I'll take it. The dealership I got my car through really pushed to have me finance through them. In the end, they tried and tried but could not match the rate I got with USAA. Try them first and you won't be disappointed.

100

2015-06-17T00:00:00+00:00 June 17, 2015

By
Anonymous

0 votes

0useful

I'm very pleased with the service I receive from USAA. I do pretty much everything with them- banking, investing, insurance, and of course, auto loans. They're the best when it comes to service and rates. No one can compare to the amount they'll save you, and no one with treat you so well.

100

2015-06-12T00:00:00+00:00 June 12, 2015

By
Anonymous

0 votes

0useful

I've used USAA in the past for other things, but recently my wife and I got an auto loan through them. I dealt with them mostly, and I have to say, they were great to work with. My loan officer was very polite and friendly, everything you could ask for. I give them five stars. Great service.

80

2015-06-09T00:00:00+00:00 June 9, 2015

By
Anonymous

0 votes

0useful

I was looking to refinance my car and figured my bank would be the best option, but they ended up being much higher than I thought. USAA beat my personal banks APR and now I'm paying about 5k less over the course of my loan. They were very easy to work with and the process was so quick. Highly recommended.

80

2015-06-09T00:00:00+00:00 June 9, 2015

By
Anonymous

0 votes

0useful

This was my first experience with USAA and I am very pleased. My friend recently got an auto loan through them and recommended me. I couldn't be happier. Their service was phenomenal and my interest rate was so low. I'd highly recommend USAA to anyone looking for a low rate auto loan with a great company!

60

2015-06-01T00:00:00+00:00 June 1, 2015

By
Anonymous

0 votes

0useful

I've been with USAA for YEARS and I like them, but I just have such an issue with their ridiculous need to advertise EVERYWHERE. Sometimes, I'll be up late watching TV and they'll have 4 of the same ads on different channels. It's ridiculous. They should keep their advertising efforts focused on their target customer, not every Joe.

40

2015-05-27T00:00:00+00:00 May 27, 2015

By
Anonymous

0 votes

0useful

It's a shame to say, but USAA is only good when you are on active duty. When my husband was discharged, our service from them completely changed. All of a sudden, their friendly service turned into feeling like we were pulling teeth. They obviously only care when you're active, not afterward. Such a shame.

80

2015-05-22T00:00:00+00:00 May 22, 2015

By
Anonymous

0 votes

0useful

I can't make too many complaints about USAA because they have always pulled through for me. When I wrecked my vehicle and had to get a new one, they got me a good loan with an okay interest rate. Not the lowest but I can't complain. They have always had the best customer service and the most pleasant people to deal with.

80

2015-05-04T00:00:00+00:00 May 4, 2015

By
Anonymous

0 votes

0useful

I'm so happy that USAA was able to help when our car dealership screwed up our loan. For whatever reason they didn't include our down payment, but USAA figured it all out and fixed it for us. We are truly grateful, because working with that dealership was a pain. I'm happy we're done with them and have moved on to a USAA.

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